Has the Profit Cycle Bottomed?
The Q3 earnings reports continue to be better than expected even as we see the final phase of the reporting cycle through quarterly results from the likes of Walmart WMT, Target TGT and other conventional retailers.
Overall earnings growth is on track to be positive for Q3, the first year-over-year earnings growth after three back-to-back quarters of declining earnings.
In terms of the current scorecard, we now have results from 468 S&P 500 members or 93.6% of the index’s total membership. Total Q3 earnings for these companies are up +1.5% from the same period last year on +1.8% higher revenues, with 81.6% beating EPS estimates and 62% beating revenue estimates.
Looking at Q3 as a whole, combining the actuals the actuals that have come out with estimates for the still-to-come companies, total S&P 500 earnings are on track to increase +2.8% from the same period last year on +1.9% higher revenues.
Excluding the Energy sector drag, Q3 earnings for the rest of the index would be up +8% from the same period last year.
For more details about the Q3 earnings season and the evolving revisions picture, please check out our weekly Earnings Trends report here >>>>> Earnings Estimates Moving Lower as Growth MOderate
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Walmart Inc. (WMT) : Free Stock Analysis Report
